Pakistan has begun preparations for the fifth review of its Extended Fund Facility program with the International Monetary Fund, with talks expected to take place next month and potentially unlock around $1.2 billion in fresh financing.
An IMF delegation is expected to visit Pakistan next month to assess the government’s progress on agreed program targets, according to Ministry of Finance sources.
The Finance Ministry has directed relevant ministries and departments to prepare updated data and progress reports ahead of the mission. Officials will brief the IMF team on progress toward structural benchmarks and other economic reform commitments.
Energy sector reforms are expected to be a key focus of the review, particularly targets related to circular debt in the electricity and gas sectors. Pakistan’s negotiating team will brief the IMF on measures taken to improve the sector and meet commitments under the ongoing program.
Successful completion of the review could unlock around $1 billion under the existing EFF program, subject to approval by the IMF’s Executive Board.
Pakistan could also receive another $200 million under the Resilience and Sustainability Facility, which provides financing to help countries address climate related challenges. The combined disbursement could therefore reach approximately $1.2 billion if Pakistan successfully completes the review and secures the Fund’s approval.
The government has asked all relevant ministries to finalize the required data and reports before the IMF mission arrives.
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